Vision A vividly descriptive image of what a company wants to be or wants to be known for.

Mission A statement of intent of what a company wants to create, and through which lines of business.

Purpose An articulation of the functions that a company intends to fulfil through its businesses.

Value The set of cherished notions and beliefs that guides every move that a company makes.

Goal The business targets that a companys vision, mission, and purpose are translated into

Strategy The methods that a company employs to achieve the goal that its vision provides.

8AN A-Z OF CORPORATE VISION STATEMENTS

AMTREX, Arvind Nair To be one of the top three tropical air-conditioner manufacturers in the world in five years.

ANDERSEN CONSULTING, Sid KhannaTo help our clients change to be more successful.

B.K.MODI GROUP, B.K.ModiTo develop, manufacture, market, and service a range of products and services, through group companies, to help our customers enhance quality and become more productive.

CADBURY, J.M.Robertson Cadbury India will continue to maintain its leadership position in the confectionery market as well as achieving a national presence in the food drinks sector.

CEAT, H.V.Goenka We will attain undisputed leadership in our core sectors with global leadership in at least one business. our market capitalisation shall be among the top three industrial group in India.

9AN A-Z OF CORPORATE VISION STATEMENTS

HDFC, Deepak s.Parekh Develop close relationships with individual householdsmaintain position as the premier housing finance institution in the country transform ideas into viable and creative solutions.

McKINSEY CO.,Anupam Puri To help leading corporations and governments be more successful.

MOTOROLA, A.Sharma To serve an increasingly mobile workforce and society with the broadcast line of platforms and products, based on its two core competencies radio communications and semiconductors.

NTPC, Rajinder Singh To make available reliable and quality power in increasingly large quantities

TISCO, J.J.Irani To strengthen Indias industrial base through the effective utilisation of men and materials. The means envisaged to achieve this are high technology and productivity, consistent with modern management practices

10ARE GOALS AND OBJECTIVES TWO SIDES OF THE SAME COIN ?

OBJECTIVES SHOULD BE BROAD AND TIMELESS STATEMENTS. THEY MAY BE STATED IN QUANTITATIVE OR QUALITATIVE TERMS.

GOALS ARE SPECIFIC, TIME BASED POINTS OF MEASUREMENT THAT THE ORGANISATION INTENDS TO MEET IN THE PURSUIT OF ITS BROAD OBJECTIVES.

- KING AND CLELAND

ONGC OBJECTIVES

CONTINUE AND EXPAND EXPLORATION EFFORTS TO CONVERT IN THE FASTEST TIME POSSIBLE THE COUNTRYS PROGNOSTICATED HYDRO-CARBON RESOURCES TO ESTABLISHED RESERVES.

GOAL COULD BE 10 INCREASE IN MARKET SHARE IN NEXT SIX MONTHS.

11TYPES OF GOALS AND OBJECTIVES

OBJECTIVES

MARKETING

INNOVATION

HUMAN ORGANISATION

FINANCIAL RESOURCES

PHYSICAL RESOURCES

PRODUCTIVITY

SOCIAL RESPONSIBILITY

PROFIT REQUIREMENTS

PETER DRUCKER

GOALS

OFFICIAL-ANNUAL REPORTS, MOA, ETC. PR VALUE ASSOCIATION.

OPERATIVE -WHAT THE ORGANISATION IS REALLY ATTEMPTING TO DO.

OPERATIONAL -_TO INFLUENCE THE BEHAVIOUR OF THE STAFF AND MEASURE THEIR PERFORMANCE.

RULES -DELIVERY OF PAYCHECKS, USE OF COMPANY CARS, SMOKING ETC. -STEINER G.A

POLICY IT IS A GUIDE TO ACTION.

STANDING PLAN WHICH IS USED TO GUIDE SPECIFICATIONS.

GUIDES TO ACTION OR CHANNELS TO THINKING.

A POLICY IS A DEFINITION OF COMMON PURPOSES FOR ORGN COMPONENTS OF THE CO. AS A WHOLE IN MATTERS WHERE, IN THE INTEREST OF ACHIEVING BOTH COMPONENT AND OVERALL CO OBJECTIVES, IT IS DESIRABLE THAT THOSE RESPONSIBLE FOR IMPLEMENTATION EXERCISE DISCRETION AND GOOD JUDGMENT IN APPRAISING AND DECIDING AMONG ALTERNATE COURSE OF ACTION. GE USA

13OH GOD ! THEN WHATS THIS STRATEGY ALL ABOUT IS ?

REFERS TO A BLUEPRINT OF THE ORGANISATIONAL GAMEPLAN INDICATING HOW THE ORGN WILL ACHIEVE ITS OBJECTIVES AND MISSIONS.

16 COMPONENTS OF A COMPETITORS ANALYSISWHAT DRIVES WHAT THE COMPETITOR THE COMPETITOR IS DOING AND CAN DOFUTURE GOALSCURRENT STRATEGY AT ALL LEVELS OF MANAGEMENT AND IN MULTIPLE DIMENSIONS HOW THE BUSINESS IS CURRENTLY COMPETINGCOMPETITORS RESPONSE PROFILE

IS THE COMPETITOR SATISFIED WITH ITS CURRENT POSITION?

WHAT LIKELY SHIFTS OR STRATEGIES THE COMPETITOR WILL MAKE.?

WHERE IS THE COMPETITOR VULNERABLE.?

WHAT WILL PROVOKE THE GREATEST AND MOST EFFECTIVE

RETALIATION BY THE COMPETITOR?

CAPABILITIESASSUMPTIONSHELD ABOUT ITSELF AND THE INDUSTRYBOTH STRENGTHS AND WEAKNESSES 17FUNCTIONS OF A COMPETITORS INTELLIGENCE SYSTEMCOLLECTING FIELD DATACOLLECTING PUBLISHED DATACOMPILING THE DATACATALOGING THE DATADIGESTIVE ANALYSISCOMMUNICATION TO STRATEGISTCOMPETITOR ANALYSIS FOR STRATEGY FORMULATION 18M A R K E T S I G N A L S

Stars Businesses with high relative share in high-growth markets usually will require larege amounts of cash to sustain growth but have a strong market position that will yield high reported profits. They may be nearly in cash balance.

22RELATIVE MARKET SHARE(Cash Generation)

Question Marks Businesses with low relative share in rapidly growing markets require large cash inflows to finance growth and are weak cash generators because or their competitive position.

LIMITATIONS

The market has been defined properly to account for important shared experience and other intedependencies with other markets. This is often a subtle problem requiring a great deal of analysis.

The structure of the industry and within the industry are such that relative market share is a good proxy for competitive position and relative costs. This is often not true.

Market growth is a good proxy for required cash investment. Yet profit (and cash flow) depend on a lot of other things.

ARE SUBJECT TO TRENDS IMPROVING THEIR PRICE-PERFORMANCE TRADEOFF WITH THE INDUSTRYS PRODUCT,

OR

ARE PRODUCED BY INDUSTRIES EARNING HIGH PROFITS.

33BACK TO BASICS By Thomas J.Peters

Robert H.Waterman, Jr.

Managing Ambiguity and paradox

A Bias for Action

Close to the Customer

Autonomy and Entrepreneurship

Productivity Through People

Hands-On, Value-Driven

Stick to the Knitting

Simple Form, Lean Staff

34Improving ROI the easier wayNow, ROI (or RONA, OR ROCE, and so forth) has two components a numerator - - net income -- and a denominator -- investment, net assets, or capital employed. ( In a service industry, a more appropriate denominator may be head-count.) Managers throughout our not-so-hypothetical firm also know that raising net income is likely to be a harder slog than cutting assets and head-count. To grow the numerator, top management must have a point of view about where the new opportunities lie, must be able to anticipate changing customer needs, must have invested preemptively in building new competencies, and so on. So under intense pressure for a quick ROI improvement, executives reach for the lever that will bring the quickest, surest improvement in ROI -- the denominator. To cut the denominator, top management doesnt need much more than a red pencil. Thus the obsession with denominators. 35CHANGING MISSION STATEMENTS WITH TIMEATTs visionary mission some 80 years ago was described by a former chairman this way The dream of good, cheap, fast, worldwide telephone service . is not speculation. It is a perfectly clear statement that youre going to do something. Faced with its recent divestiture, ATT has since altered its mission the company now aims to be a major factor in the worldwide movement and management of information. Most observers would probably agree that this mission statement does not have the clarity and potential for excitement that the earlier one possessed.